The AdTech firm AcuityAds reported revenue of CAD 27.5 million (approximately USD 21.4 million) for Q3 2021 (5.4% YoY growth), primarily driven by its “Illumin” platform, a  customer journey automation platform introduced in October 2020, which recorded revenue of CAD 7.4 million over the same period (a 42% QoQ growth). The revenue growth was supported by new customer acquisitions where the firm reported a 53% QoQ growth in tier 1 clients for its Illumin platform. In terms of net income, the firm achieved CAD 3.4 million in Q3 2021 (265% YoY growth) which implies an EPS of CAD 0.06. 

With respect to AcuityAds other segments, “True Reach Insights,” the firm’s connected TV analytics platform, recorded a 220% YoY growth in Q3 2021 while its managed services (AcuityAds legacy marketing consultancy segment) recorded revenue of CAD 19 million (3% YoY growth) over the same period.

According to analysts, while the firm achieved its earnings target, it fell short of its revenue target by a noteworthy margin. This contributed to AcuityAds stock falling by more than 20% subsequent to the release of its Q3 2021 financial results.  

While specific revenue and earnings targets were not disclosed, the management stated that they expect to record strong growth in Q4 2021, which will continue in 2022. The growth will be driven by its Illumin platform (which currently accounts for 27% of AcuityAds revenue) into which additional resources are to be allocated for marketing, sales, and product development to grow its customer base, which stood at 40 in Q2 2021.